MIRA
INFORM REPORT
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Report Date : |
24.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
UFE
PTE LTD |
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Registered Office : |
5
Joo Koon Way, Singapore – 628944 |
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Country : |
Singapore
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01/08/1978 |
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Com. Reg. No.: |
197801918H |
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Legal Form : |
Pte Ltd |
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Line of Business : |
Design and Manufacture of Molds, Dies,
Fixtures |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Subject Company
UFE PTE
LTD
Line Of
Business
DESIGN AND MANUFACTURE OF MOLDS, DIES,
FIXTURES
Parent Company
UFE INCORPORATED
(PERCENTAGE OF SHAREHOLDING: 100.00%)
Financial Elements
FY 2006
COMPANY
Sales :
S$8,446,608
Networth :
S$5,054,917
Paid-Up Capital : S$3,500,000
Net result :
S$-116,006
Net
Margin(%) : -1.37
Return on Equity(%) : -2.29
Leverage Ratio : 0.95
Rating
Credit Rating : Sing $ 5000001 to Sing $ 10000000
COMPANY
IDENTIFICATION
Subject Company :
UFE PTE
LTD
Former Name :
COSAMOLD
(S) PRIVATE LIMITED
Business Address :
5 JOO KOON WAY
Town :
SINGAPORE
Postcode :
628944
County :
-
Country :
Singapore
Telephone :
6861
2466
Fax :
6862 0252
ROC Number :
197801918H
Reg. Town :
-
PREVIOUS
IDENTIFICATION
COSAMOLD (S) PRIVATE LIMITED DATE OF CHANGE OF NAME: 03/06/1992
SUMMARY
All amounts in this report are in : SGD
Legal Form :
Pte Ltd
Date Inc. :
01/08/1978
Previous Legal Form :
-
Summary year :
31/03/2006
Sales :
8,446,608
Networth :
5,054,917
Capital :
3,500,000
Paid-Up Capital :
3,500,000
Employees :
75
Net result :
-116,006
Share value :
-
Auditor :
HLB LOKE
LUM
REFERENCES
Litigation :
No
Company status :
TRADING
Started :
01/08/1978
PRINCIPAL(S)
POON TAI TUEN PATRICK S2184741J Director
DIRECTOR(S)
POON TAI TUEN PATRICK S2184741J Director
Appointed on :
01/07/1994
Street :
526 EAST COAST ROAD
#11-04
OCEAN PARK
Town :
SINGAPORE
Postcode :
458968
Country :
Singapore
MARTIN N. KELLOGG 070697549 Director
Appointed on :
08/04/1992
Street :
339 MOUNT CURVE
BOULEVARD ST PAUL
MN 55105-1217
Town :
MINNESOTA
Postcode :
-
Country :
United States
ORVILLE D. JOHNSON 151702691 Director
Appointed on :
08/04/1992
Street :
8820 NEAL AVE NORTH
STILLWATER, MN 55082
Town :
MINNESOTA
Postcode :
-
Country :
United States
LOOI KOK YANG S0141442I Company Secretary
Appointed on :
02/12/1996
Street :
1 SIMEI STREET 4
#10-08
SIMEI GREEN CONDOMINIUM
Town :
SINGAPORE
Postcode :
529861
Country :
Singapore
GERALD B SINGHAM S1503623J Company Secretary
Appointed on :
30/03/2000
Street :
100 CLEMENCEAU AVENUE NORTH
#14-111
CAVENAGH HOUSE
Town :
SINGAPORE
Postcode :
229491
Country :
Singapore
FORMER DIRECTOR(S)
VAN-COMPERNOLLE GEERT 5011806
RICKER HERMANN JOSEF SK7265059
BAEY LIAN PECK S0579306H
NAVRATIL THOMAS NO535860
GISLER HANS-RUDOLF 6111983
WEISS ERICH EMIL 4719307
MUELLER RICHARD GEORGE 17125669
NABHOLZ PETER HERMANN 1704531
ACTIVITY(IES)
TOOL And DIE MAKERS Code:21890
PLASTICS - TOOLING Code:17050
BASED ON ACRA'S RECORD AS AT 11/12/2006,
1) MANUFACTURE OF DIES, MOULDS, TOOLS, JIGS
AND FIXTURES; DESIGN
& MANUFACTURING MOULDS, DIES, TOOLS AND PRODUCE/ASSEMBLE
CHARGES
Date: 30/08/1996
Comments : CHARGE NO: 9605252
AMOUNT SECURED: 0.00 AND ALL MONIES OWING
CHARGEE(S): UFE INCORPORATED
Date: 06/04/1990
Comments : CHARGE NO: 9001564
AMOUNT SECURED: 0.00 AND ALL MONIES OWING
CHARGEE(S): THE DEVELOPMENT BANK OF
SINGAPORE LIMITED
PREMISES/PROPERTY
INFORMATIONS
Date
: 15/12/2006
Estimated Value : Tax
rate: 10
Site Address : 5 JOO KOON WAY
Town
: SINGAPORE
County
:
Postcode: 628944
Country
: Singapore
Annual Value
: 288,000
BANKERS
THE DEVELOPMENT BANK OF SINGAPORE LIMITED
SHAREHOLDERS(S)
UFE INCORPORATED 3,500,000 Company
Street
: 1850 SOUTH
GREELEY STREET
STILL WATER, P O BOX 7
MN 55082-0007
Town :
-
Postcode :
-
Country :
United States
FORMER SHAREHOLDER(S)
RICKER HERMANN JOSEF 395,000
TAN POH HIANG 100,000
UHAG UEBERSEE-HANDEL AG 1,155,000
AMERICAN INTERNATIONAL INDUSTRIES 100,000
COSA LIEBERMANN LTD 3,105,000
KELLOGG MARTIN N 385,000
JOHNSON ORVILLE D 385,000
HOLDING COMPANY
UFE INCORPORATED UF10036C % : 100
SUBSIDIARY(IES)
No Participation
In Our Database
PAYMENT HISTORY AND
EXPERIENCES
Trade Morality : AVERAGE
Liquidity :
LACKING
Payments :
REGULAR
Trend :
LEVEL
Financial Situation : AVERAGE
FINANCIAL ELEMENTS
Audit Qualification:
UNQUALIFIED (CLEAN)
UNQUALIFIED (CLEAN)
Date Account Lodged: 16/08/2006
Balance Sheet Date: 31/03/2006 31/03/2005
Number of weeks: 52 52
Consolidation Code:
COMPANY COMPANY
--- ASSETS ---
Preliminary Exp 1,709,961 1,749,025
Tangible Fixed Assets: 4,738,866
4,967,306
Total Fixed
Assets: 6,448,827 6,716,331
Inventories: 1,562,499 447,905
Receivables: 1,774,001 1,550,626
Cash,Banks, Securities: 2,300 2,300
Other current assets: 75,345
44,201
Total Current
Assets: 3,414,145 2,045,032
TOTAL ASSETS: 9,862,972 8,761,363
--- LIABILITIES ---
Equity capital: 3,500,000 3,500,000
Reserves:
Reeval. Reserves: 2,385,239 2,246,585
Profit & lost
Account:
-830,322
-714,316
Total Equity: 5,054,917 5,032,269
Other long term Liab.: 646,400 660,000
Total L/T
Liabilities:
646,400
660,000
Trade Creditors: 1,117,392 749,834
Advanced payments: 1,168,996 380,087
Due to Bank: 1,452,073
1,652,460
Other Short term Liab.: 423,194 286,713
Total short term
Liab.: 4,161,655 3,069,094
TOTAL
LIABILITIES:
4,808,055
3,729,094
PROFIT & LOSS
ACCOUNT
Net
Sales
8,446,608
7,719,147
Purchases,Sces & Other Goods: 7,548,865 6,607,848
Gross
Profit:
897,643
1,111,299
NET
RESULT BEFORE TAX:
-111,606 89,968
Tax
:
4,400
177,022
Net
income/loss year:
-116,006
-87,054
Interest
Paid: 8,148 11,634
Depreciation: 492,458 488,132
Dividends:
Wages
and Salaries:
2,466,599
2,196,716
RATIOS
31/03/2006 31/03/2005
Net result / Turnover(%): -0.01
-0.01
Stock / Turnover(%): 0.18
0.06
Net
Margin(%): -1.37 -1.13
Return on Equity(%):
-2.29
-1.73
Return
on Assets(%): -1.18 -0.99
Net
Working capital: -747510.00 -1024062.00
Quick
Ratio: 0.43 0.51
Current
ratio: 0.82 0.67
Receivables
Turnover: 75.61 72.32
Leverage
Ratio: 0.95 0.74
Net Margin :
(100*Net income loss year)/Net sales
Return on Equity : (100*Net income loss
year)/Total equity
Return on Assets : (100*Net income loss year)/Total
fixed assets
Net Working capital : (Total current assets - Total short
term liabilities)
Cash Ratio :
Cash Bank securities/Total short term liabilities
Quick Ratio :
(Cash Bank securities + Receivables)/Total Short term Liabilities
Current ratio :
Total current assets/Total short term liabilities
Inventory Turnover : (360*Inventories)/Net sales
Receivables Turnover : (Receivable*360)/Net sales
Leverage Ratio : Total liabilities/(Total
equity-Intangible assets)
FINANCIAL COMMENTS
THE FINANCIAL CONDITION OF THE COMPANY WAS
SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:
NET WORTH:
THE BALANCE SHEET WAS CONSIDERED PASSABLE
WITH NET WORTH IMPROVED BY 0.45% FROM S$5,032,269 IN FY2005 TO S$5,054,917 IN
FY2006. THIS WAS DUE TO THE INCREASE IN ASSET REVALUATION RESERVE TO
S$2,385,239 (2005: S$2,246,585); BY 6.17% FROM THE PRIOR FINANCIAL YEAR.
LEVERAGE:
IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY AMOUNTS DUE TO BANKS WHICH MADE UP 34.89% (2005: 53.84%) OF THE TOTAL
CURRENT LIABILITIES AND AMOUNTED TO S$1,452,073 (2003: S$1,652,460).
IN ALL, LEVERAGE RATIO IMPROVED FROM 0.74
TIMES TO 0.95 TIMES AS A RESULT OF A RISE IN TOTAL EQUITY.
LIQUIDITY:
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION
WAS INADEQUATE AS SEEN FROM THE NET WORKING CAPITAL, WHICH WAS IN NEGATIVE
TERRITORY, BUT WAS NARROWED BY 27.00% FROM S$1,024,062 IN FY2005 TO S$747,510
IN FY2006. THIS COULD IMPLY THAT SUBJECT WOULD FACE DIFFICULTIES IN FULFILLING
ITS FUTURE SHORT TERM OBLIGATIONS.
HOWEVER, CURRENT RATIO ROSE TO 0.82 TIMES,
UP FROM 0.67 TIMES AND QUICK RATIO DECLINED TO 0.43 TIMES FROM 0.51 TIMES IN
FY2005.
PROFITABILITY:
SUBJECT POSTED AN INCREASE IN REVENUE BY
9.42% FROM S$7,719,147 IN FY2005 TO S$8,446,608 IN FY2006. IN THE CONTRARY, NET
LOSS WORSENED BY 33.26% AMOUNTING TO S$116,006 (2005: S$87,054). AS A RESULT,
NET MARGIN DECLINED TO +1.37% (2005: -1.13%).
THE INCREASE IN NET LOSS WAS ATTRIBUTED BY
THE DECREASE IN "OTHER OPERATING INCOME" BY 65.47%, AMOUNTING TO
S$3,594 (2005: S$10,408).
DEBT
SERVICING:
DEBT SERVICING PROBLEMS MIGHT NOT BE
EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE
DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS
LENGTHENED TO 76 DAYS (2005: 72 DAYS).
NON-CURRENT ASSETS:
DEFERRED INCOME TAX ASSET AMOUNTING TO
S$1,709,961 (2004: S$1,749,025) WAS CLASSIFIED UNDER PRELIMINARY.
NOTES TO THE FINANCIAL STATEMENT:
BANK BORROWINGS:
THE BANK OVERDRAFTS ARE SECURED BY A LEGAL
MORTGAGE OVER THE COMPANY'S LEASEHOLD LAND AND BUILDING.
THE WEIGHTED AVERAGE EFFECTIVE INTEREST RATE
ON OVERDRAFTS IS 4.75% (2005: 4.75%) PER ANNUM.
BACKGROUND/OPERATION
THE COMPANY WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON
01/08/1978 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "COSAMOLD
(S) PRIVATE LIMITED".
SUBSEQUENTLY ON 03/06/1992, SUBJECT CHANGED
TO ITS PRESENT NAMESTYLE OF "UFE PTE LTD".
AS AT 11/12/2006, THE COMPANY HAS AN ISSUED
AND PAID-UP CAPITAL OF 3,500,000 SHARES, OF A VALUE OF S$3,500,000.
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING
AND CORPORATE REGULATORY AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) MANUFACTURE OF DIES, MOULDS, TOOLS, JOGS
AND FIXTURES; DESIGN & MANUFACTURING MOULDS, DIES & TOOLS; & PRODUCE/ASSEMBLE
PLASTIC COMPONENTS
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL
DIRECTORIES UNDER THE CLASSIFICATION OF: PLASTICS - MOULDERS
DURING THE FINANCIAL YEARS, UNDER REVIEW,
SUBJECT'S PRINCIPAL ACTIVITIES CONSIST OF THE DESIGNING AND MANUFACTURING OF MOULDS,
DIES AND TOOLS AS WELL AS THE PRODUCTION AND ASSEMBLY OF PLACTIC
COMPONENTS.
FROM THE RESEARCH DONE, THE FOLLOWING
INFORMATION WAS GATHERED:
ACTIVITIES:
* DESIGN AND MANUFACTURE OF PRECISION
PLASTIC INJECTION MOLDS.
* CUSTOM PLASTIC INJECTION MOULDING OF
COMPONENTS FOR ELECTRONIC, AUTOMOTIVE
AND COMPUTER INDUSTRIES AND PACKAGING.
* MOLD MAKING AND INJECTION MOLDING OF
PRECISION GEARS.
* SUBJECT PROVIDES FULL RANGE OF DESIGN AND
MANUFACTURING CAPABILITIES TO CUSTOMERS THROUGHOUT THE ASEAN REGION, CENTRAL ASIA, EUROPE AND
UNITED STATES.
INDUSTRIES SERVED:
* CONSUMER PACKAGING
* AUTOMOTIVE
* HEALTHCARE
* ENGINEERING FIELDS OF ELECTRONICS,
ELECTRICAL, HYDRAULIC
SUBJECT IS A MEMBER OF THE FOLLOWING
ENTITIES:
* SINGAPORE MANUFACTURER FEDERATION (SMAF)
* SINGAPORE PRECISION ENGINEERING TOOLING
ASSOCIATION (SPETA)
* THE AMERICAN CHAMBER OF COMMERCE IN
SINGAPORE (AMCHAM)
* SINGAPORE QUALITY INSTITUTE (SQI)
* SINGAPORE NATIONAL EMPLOYEE FEDERATION
(SNEF)
* SINGAPORE BUSINESS FEDERATION (SBF)
TERMS OF PAYMENT:
* TRADE AND OTHER PAYABLES : 30-90 DAYS TERM
QUALITY ASSESSMENT:
* ISO 9001:(IM/MM)
* TS 16949
NUMBER OF EMPLOYEES:
* 75 (AS OF 2006)
FROM THE TELE-INTERVIEW CONDUCTED ON
15/12/2006, NO TRADE INFORMATION
WAS AVAILABLE AS SUBJECT'S PERSONNEL
DECLINED TO PROVIDE.
THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING
COMPANY IS UFE
INCORPORATED, A COMPANY INCORPORATED IN THE UNITED STATES OF AMERICA.
REGISTERED AND BUSINESS ADDRESS:
5 JOO KOON WAY
SINGAPORE 628944
DATE OF CHANGE OF ADDRESS: 15/10/2003
-
OWNED PREMISE
WEBSITE: www.ufe.com.sg
EMAIL: sales@ufepl.com.sg
MANAGEMENT
THE DIRECTORS AT THE TIME OF THIS REPORT
ARE:
1) POON TAI TUEN PATRICK, A SINGAPOREAN
-
HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:
SANDEN INTERNATIONAL
UNITED SANDEN HOLDINGS PTE LTD
2) MARTIN N. KELLOGG, AN AMERICAN
-
BASED IN USA
3) ORVILLE D. JOHNSON, AN AMERICAN
-
BASED IN USA
SINGAPORE'S COUNTRY RATING 2006
INVESTMENT GRADE
IN SINGAPORE, THE POLITICAL SITUATION
APPEARS TO BE VERY STABLE.
ECONOMIC GROWTH IS BECOMING MORE MODERATE AS
INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR
ELECTRONIC PRODUCTS.
ECONOMIC PERFORMANCE HAS REMAINED STRONG,
UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE
STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG
KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED
FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE
CONTRIBUTED TO SINGAPORE'S STRONG FINANCIAL CONDITION.
AS THE ELECTRONICS SECTOR FACES COMPETITION
FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN
CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF
EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR
1995. ELECTRONICS SECTOR SECTOR'S SHARE HAS DECLINED FROM 80% TO 60%
DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF
PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND
BIOTECHNOLOGIES.
ASSETS
* ONE OF THE
MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS
PERFORMANCE.
* ONE OF ASIA'S MOST ADVANCED COUNTRIES IN
QUALITY COMPETITIVENESS
TERMS.
* WORKFORCE'S EDUCATION AND SKILL LEVEL IS
VERY HIGH.
* A MAJOR EXPORT
OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.
* THE BUSINESS ENVIRONMENT HAS BEEN VERY
FAVOURABLE.
* GREAT POLITICAL STABILITY.
WEAKNESSES
* ECONOMY REMAINED OVERSPECIALISED IN THE
ELECTRONICS SECTOR.
* MUST
ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN
ECONOMIES
* REFORMS ARE STILL NEEDED TO FOSTER
INNOVATION AND EDUCATION-SYSTEM
MODERNIZATION.
* AGING POPULATION COULD ULTIMATELY AFFECT
ECONOMIC PERFORMANCE.
MANUFACTURING SECTOR
SINGAPORE'S
MANUFACTURING SECTOR, WHICH MAKES UP ABOUT A QUARTER OF SINGAPORE'S ECONOMY,
EXPANDED 22.5 PERCENT FROM JUNE LAST YEAR, MORE THAN TWICE THE 10.6 PER CENT
PACE IN MAY. THIS WAS LED BY A SURGE IN DRUGS AND SEMICONDUCTOR OUTPUT, AND
CONTINUED STRENGTH IN RIG-BUILDING. THE SURPRISINGLY STRONG JUNE NUMBERS MEAN
THAT IN THE APRIL-TO-JUNE QUARTER, MANUFACTURING OUTPUT JUMPED 12.5 PERCENT.
TOTAL MANUFACTURING
OUTPUT EXPANDED BY 20 PER CENT IN THE FIRST QUARTER OF 2006, IMPROVING FROM THE
14 PER CENT GROWTH IN THE PREVIOUS QUARTER. ALL CLUSTERS, EXCEPT CHEMICALS AND
GENERAL MANUFACTURING, RECORDED DOUBLEDIGIT
GAINS IN THE
QUARTER. EXCLUDING THE BIOMEDICAL MANUFACTURING CLUSTER, MANUFACTURING OUTPUT GREW BY 15 PER CENT.
INDUSTRY
CLUSTER % GROWTH IN JUNE % GROWTH IN APRIL-TO- % GROWTH IN
(YEAR-ON-YEAR)
JUNE QUARTER FIRST HALF OF
(YEAR-ON-YEAR) 2006
(YEAR-ON-YEAR)
BIOMEDICAL
MANUFACTURING 59.4 15.6 29.6
TRANSPORT
ENGINEERING 30.4 29.4 34.2
PRECISION
ENGINEERING 15.4 10.6 12.4
ELECTRONICS
10.3 9.8 12.6
GENERAL
MANUFACTURING 8.1 4.6 5.1
CHEMICALS
3.4 5.4 4.1
TOTAL 22.5 12.5 16.4
SOURCE: ECONOMIC
DEVELOPMENT BOARD
PERFORMANCE BY
CLUSTER
THE TRANSPORT
ENGINEERING SECTOR CLOCKED IN ANOTHER GOOD MONTH, EXPANDING 30.4 PER CENT FROM
JUNE LAST YEAR. SHIPYARDS' OUTPUT SWELLED BY MORE THAN HALF
COMPARED TO A YEAR
AGO, AS BUILDING OF RIGS AND SHIPS GATHERED PACE. BUT GROWTH IN AEROSPACE
ENGINEERING SLOWED 4 PER CENT, AFTER ACHIEVING GROWTH OF 21.2 PER CENT IN MAY
AND 36.9 PER CENT IN APRIL.
ELECTRONICS, WHICH
MADE UP A THIRD OF MANUFACTURING'S CONTRIBUTION TO ECONOMIC GROWTH IN 2005,
EXPANDED BY 8.6 PER CENT IN MAY, HELPED BY A 38.9 PER CENT EXPANSION IN THE
SEMICONDUCTOR SEGMENT. UP CLOSE, ELECTRONICS WAS A TALE OF TWO PRODUCT
SEGMENTS.
OUTPUT OF
SEMICONDUCTOR CHIPS JUMPED ALMOST 40 PER CENT ON THE BACK OF STRONG DEMAND FOR
END-PRODUCTS SUCH AS DIGITAL GADGETS. PRODUCTION OF MOBILE PHONES, CONSUMER
ELECTRONICS AND PARTS ALSO INCREASED.
ON THE OTHER HAND,
DISK DRIVE OUTPUT PLUNGED 38 PER CENT, AS MANUFACTURERS CONTINUED TO RELOCATE
THEIR PLANTS TO CHEAPER COUNTRIES. MUCH HOPE IS PINNED ON SEMICONDUCTOR CHIPS
TO PROPEL THE ELECTRONICS INDUSTRY IN THE MONTHS AHEAD.
THE PRECISION
ENGINEERING CLUSTER CLIMBED BY 15 PER CENT IN THE FIRST QUARTER,
AFTER RISING BY 13
PER CENT IN THE PREVIOUS QUARTER. THE MACHINERY AND SYSTEMS
SEGMENT TURNED IN A
STRONG GROWTH OF 31 PER CENT AS DEMAND BOOSTED THE PRODUCTION OF SEMICONDUCTOR
ASSEMBLY EQUIPMENT, LIFTING AND HOISTING MACHINERY, CONVEYING SYSTEMS,
TRANSFORMERS, AND INDUSTRIAL PROCESS CONTROL EQUIPMENT. THE PRECISION MODULES
AND COMPONENTS SEGMENT GREW BY A HEALTHY 7.0 PER CENT.
THE CHEMICALS
CLUSTER REGISTERED A MODEST INCREASE OF 2.2 PER CENT IN THE FIRST QUARTER,
ALMOST UNCHANGED FROM THE GROWTH IN THE QUARTER EARLIER. THE PETROLEUM SEGMENT
DIPPED 0.8 PER CENT AS WEAKER DEMAND LED TO LOWER CRUDE OIL THROUGHPUT IN REFINERIES.
SOME REFINERIES ALSO SHUT DOWN SOME OF THEIR DISTILLATION PLANTS FOR
MAINTENANCE. HOWEVER, THE PRODUCTION OF SPECIALTY CHEMICALS ROSE 7.3 PER CENT
WHILE THE PETROCHEMICALS SEGMENT GREW 2.7 PER CENT.
GROWTH IN THE
BIOMEDICAL MANUFACTURING CLUSTER REACHED 47 PER CENT, UP SHARPLY FROM THE 7.6
PER CENT IN THE PRECEDING QUARTER. THIS WAS CONTRIBUTED BY
THE PHARMACEUTICALS
SEGMENT, WHICH SURGED BY 66 PER CENT AS A RESULT OF THE
DIFFERENT
PRODUCT-MIX OF ACTIVE PHARMACEUTICAL INGREDIENTS IN THE QUARTER AND
THE LOW BASE LAST
YEAR. THE MEDICAL TECHNOLOGY SEGMENT,
HOWEVER, CONTRACTED BY 27 PER CENT DUE TO LOWER PRODUCTION OF MEDICAL
EQUIPMENT, APPLIANCES AND SUPPLIES BECAUSE OF WEAKER DEMAND FROM THE US AND
EUROPE.
THE GENERAL
MANUFACTURING INDUSTRIES EXPANDED BY 5.4 PER CENT, PICKING UP PACE FROM THE 3.3
PER CENT GROWTH IN THE FOURTH QUARTER OF 2005. WHILE THE PRINTING INDUSTRIES
GREW 7.4 PER CENT, THE FOOD AND BEVERAGES INDUSTRIES CONTRACTED BY 1.2 PER
CENT.
BUSINESS
EXPECTATIONS FOR JULY TO DECEMBER 2006
SINGAPORE
MANUFACTURERS REMAIN POSITIVE ABOUT BUSINESS PROSPECTS IN THE SECOND HALF OF
THIS YEAR. OVERALL, A NET WEIGHTED 26% OF MANUFACTURERS, WHO WERE POLLED IN
JUNE AND JULY SAID THEY EXPECT AN IMPROVED BUSINESS ENVIRONMENT IN THE
JULY-DECEMBER PERIOD, UNCHANGED FROM THE PREVIOUS SURVEY COVERING APRIL TO
SEPTEMBER.
MANUFACTURERS
GENERALLY EXPECT POSITIVE CONDITIONS IN THE SECOND QUARTER OF 2006 TO BE
MAINTAINED IN THE SECOND HALF OF THE YEAR. OVERALL, THE MANUFACTURING SECTOR'S
OUTLOOK REMAINS ROSY, ACCORDING TO THE EDB SURVEY.
THE TRANSPORT
ENGINEERING SECTOR WAS NOT AS BULLISH AS IN THE SECOND QUARTER,
WITH NET 29 PER
CENT OF FIRMS PREDICTING AN IMPROVEMENT IN CONDICTIONS, COMPARED WITH 45 PER
CENT IN THE SECOND QUARTER.
AMONG SINGAPORE'S MANUFACTURERS,
ELECTRONICS MAKERS ARE THE MOST UPBEAT ABOUT THEIR PROSPECTS FOR THE SECOND
HALF OF THE YEAR, DESPITE WARNINGS OF AN
IMPENDING SLOWDOWN
IN DEMAND FOR THEIR OUTPUT.
ACCORDING TO A
SURVEY BY THE ECONOMIC DEVELOPMENT BOARD (EDB) ON BUSINESS EXPECTATIONS IN THE
MANUFACTURING SECTOR, WHICH COVERED NEARLY 400 FIRMS, IT WAS REVEALED THAT 45
PERCENT OF PRODUCERS IN THE ELECTRONICS CLUSTER EXPECT THEIR CIRCUMSTANCES TO
IMPROVE IN THE SECOND HALF OF THE YEAR, COMPARED WITH ONLY 26 PERCENT OF MANUFACTURERS
OVERALL.
IN ADDITION, 30
PERCENT OF THE ELECTRONICS FIRMS SURVEYED SAID THEY PLANNED TO HIRE NEW STAFF
OVER THE NEXT TWO MONTHS, UP FROM ONLY 7 PERCENT LAST QUARTER.
THE MOOD OF
OPTIMISM WAS MOST PRONOUNCED IN THE COMPUTER PERIPHERALS MARKET, WHERE AROUND
80 PERCENT OF COMPANIES POLLED EXPECT REVENUES, OUTPUT, AND STAFF NUMBERS TO
GROW IN THE SHORT TERM.
SENTIMENTS WERE
GRIMMER IN THE SEMICONDUCTOR INDUSTRY, WHERE JUST 10 PERCENT OF FIRMS SURVEYED
EXPECT OUTPUT TO RISE IN THE THIRD QUARTER AND ONLY 35 PERCENT SEE BUSINESS
CONDITIONS IMPROVING IN LATE 2006.
THE GENERALLY
POSITIVE VIEWS ARE ALSO IN LINE WITH THE GOVERNMENT'S FORECASTS FOR PRODUCTION
IN THE THIRD QUARTER, WHICH IS TIPPED TO RISE ON THE BACK OF EXPORT GROWTH.
THERE WAS ALSO AN INDICATION THAT LOCAL MANUFACTURERS MAY BE
FEELING SQUEEZED BY
PRODUCERS IN LOWER-COST DESTINATIONS LIKE CHINA. NEARLY HALF OF THOSE
MANUFACTURERS SAID THERE WERE OUTSIDE FACTORS AFFECTING THEIR ABILITY TO GARNER
MORE EXPORT ORDERS, AND "PRICE COMPETITION FROM OVERSEAS" WAS CITED
AS THE MOST IMPORTANT OF THESE.
A NET WEIGHTED
BALANCE OF 29 PER CENT OF THE PRECISION ENGINEERING CLUSTER PREDICTS AN
IMPROVEMENT IN BUSINESS CONDITIONS. THE MACHINERY AND SYSTEMS SEGMENT EXPECTS
OUTPUT OF ENGINES AND TURBINES, SEMICONDUCTOR ASSEMBLY AND TESTING EQUIPMENT,
AND INDUSTRIAL PROCESS CONTROL EQUIPMENT TO RISE IN THE SECOND QUARTER. THE
PRECISION MODULES AND COMPONENTS SEGMENT PREDICTS A TURNAROUND IN PRODUCTION
LEVEL IN THE SECOND QUARTER, FROM A SEASONALLY WEAK FIRST QUARTER.
IN THE CHEMICALS
CLUSTER, A NET WEIGHTED 12 PER CENT OF MANUFACTURERS FORESEES BETTER BUSINESS
PROSPECTS. THE PETROLEUM REFINING SEGMENT PROJECTS
HIGHER THROUGHPUT
AS THE REFINERIES CAPITALISE ON SHORTAGES ARISING FROM PLANNED REGIONAL PLANT
MAINTENANCE. MANUFACTURERS IN THE PETROCHEMICALS SEGMENT FORESEE MORE STOCKING
UP ON FINISHED GOODS IN THE SECOND QUARTER OF THE YEAR, IN ANTICIPATION OF SOME
MAINTENANCE SHUTDOWNS IN JULY AND AUGUST. IN THE SPECIALTIES AND OTHER
CHEMICALS SEGMENTS, OUTPUT AND ORDERS FOR THE SECOND QUARTER ARE EXPECTED TO
INCREASE FOLLOWING THE SEASONAL LOW IN THE LAST QUARTER.
THE BUSINESS
OUTLOOK IN THE BIOMEDICAL MANUFACTURING CLUSTER REMAINS LARGELY UNCHANGED. IN
THE PHARMACEUTICALS SEGMENT, PRODUCTION IS EXPECTED TO DIP SLIGHTLY TOGETHER
WITH PREDICTED DECLINES IN EXPORT ORDERS AND OVERSEAS DELIVERIES IN THE SECOND
QUARTER. OUTPUT FOR THE MEDICAL TECHNOLOGY SEGMENT,
HOWEVER, IS LIKELY
TO BE HIGHER, AS NEW PRODUCTS ARE LAUNCHED.
ONE SEGMENT
EXPECTING LOWER THIRD-QUARTER PRODUCTION IS BIOMEDICAL MANUFACTURING, WHERE A WEIGHTED BALANCE OF
56 PER CENT PREDICT REDUCED OUTPUT FROM THE SECOND QUARTER.
"THE WEAKNESS
IN PHARMACEUTICALS OUTPUT WOULD BE A DRAG IN MANUFACTURING GROWTH IN THE SECOND
QUARTER OF 2006," SAID UOB KAY HIAN'S ECONOMIST MR LESLIE TANG.
EXTRACTED FROM:
CHANNELNEWSASIA
ECONOMIC
DEVELOPMENT BOARD (EDB)
MINISTRY OF TRADE
AND INDUSTRY (MTI)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|